U.S. stock markets experienced a downturn on Tuesday. By the close in New York, the Dow Jones Industrial Average had fallen by 0.6 percent, reaching 49,149 points compared to the previous trading day. Similarly, the broader S&P 500 was down 0.6 percent, settling at around 7,064 points, while the technology-focused Nasdaq 100 registered a decline of 0.4 percent, concluding at approximately 26,479 points.
The market indecision was attributed to reports suggesting that the U.S. government had paused peace negotiations with Iran. Furthermore, investors were closely watching a hearing regarding the confirmation of Kevin Warsh as the chair of the U.S. central bank, the Federal Reserve. During his testimony, Warsh strongly refuted accusations from Democratic Senator Elisabeth Warren that he was merely a puppet of President Donald Trump, affirming that the central bank’s independence is “essential”.
Despite Warsh’s commitment to the Fed’s autonomy, the decision of Republican Senator Thom Tillis remains crucial. Tillis stated that he will withhold approval of Warsh’s appointment until the U.S. Department of Justice investigation into the current Fed chairman is concluded, arguing that this probe compromised the Fed’s independence.
In currency markets, the Euro was weaker by Tuesday evening, trading at 1.1748 U.S. dollars per euro, making the dollar available for 0.8512 euros. Gold prices saw a sharp decline, with the fine ounce priced at $4,703 (a decrease of 2.4 percent) in the evening, equating to 128.71 euros per gram. Conversely, oil prices rose considerably. The Brent crude oil from the North Sea cost $100.70 per barrel as of 10 p.m. German time on Tuesday, marking a substantial increase of 5.4 percent from the previous closing price.
